Question

Calculate gross profit and cost of goods sold from the following information
Net sales Rs 100000
Gross profit is 25% on cost

Answer 1

Explanation:

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Answer 2

The amount of Gross Profit will be ₹ 20,000

Explanation:

Solution :

Gross Profit = Net Sales - Cost of Goods Sold

Let,

Cost of Goods Sold = x

Net Sales = Cost of Goods Sold + Gross Profit

⇒ 1,00,000 = x + 25 % of x

⇒ 1,00,000 = x + 0.25 x

⇒ 1,00,000. = 1.25x

⇒ $\sf{x \: \: = \dfrac{1,00,000}{1.25}}$

⇒ $\sf{x \:=\: 80,000}$

⇒ x = 80,000

Cost of Goods Sold = ₹ 80,000

★ Gross Profit = Net Sales - Cost Of Goods Sold

⇒ 1,00,000 - 80,000

⇒ 20,000

Gross Profit = ₹ 20,000

★ OR

Gross profit is 25 % on cost :

⇒ 80,000 × 25 ÷ 100

⇒ 20,000

Therefore,

The amount of Gross Profit will be ₹ 20,000